Fabcity-Semiconductor Policy to be released during Budget Session...01.01.07

Fabcity to be presented as Part of Indian Union Budget. The impact would be phenomenal. The US$3 Billion Chip Fabrication Project proposed to be set up by Semindia in association with AMD, at Hyderabad, India is moving towards solid ground. The Project though unveiled in February 2006 was delayed due to lack of policy frame-work, in India, to support the Fab Industry. Globally, countries have handed out large fiscal concessions to Fab Industry considering the large employment and revenue generation potential. Semindia had demanded equity investment by Indian Govt. to the tune of US$260Million, in addition to tax concessions/ holidays. The State Govt. of Andhra Pradesh has allocated 1200 Acres of Land in a prime location, right opposite the upcoming New International Airport at Shamshabad. A special task force was engaged by the Indian Govt. to finalize the Semi Conductor Policy. Recently, the draft policy was finalized and presented to the Cabinet. The Central Govt. has now decided to release the Semi Conductor Policy on February 28th during, the presentation of the Indian Union Budget. The Annual Budget is widely discussed in India and abroad. The release of Fab Policy together with the Budget, is likely to give wide ranging publicity, to the Project. Since the Project is said to create more than 1 Million new jobs, at Shamshabad alone, the Indian Real Estate, Construction and Hospitality Industries have been keenly watching the development. The Fabcity will have several large Fabrication Units with Semindia being the Anchor Customer. The Project is situated 4KM from the International Airport entrance, on Srisailam Highway. In addition to Fabcity, the 10Km stretch from Airport along the highway is seeing large scale investments in Hardware, IT/Software Development, which will, in the coming few years, fructify into gigantic construction activities which the city of Hyderabad has not otherwise seen. Several Special Economic Zones, Star Hotels, IT Parks, Integrated Residential Townships etc are waiting to take off along Srisailam Highway. All these would follow Fabcity grounding which should now happen immediately after the Budget Session. The upcoming developments would make the recent rapid construction growth, which was seen in the IT corridor of Madhapur / Hitec City / Guchibowli, pale in comparison. Considering the fact that a huge, vibrant community of people would need to work and stay along the Srisailam Highway, Real Estate Developers have been launching hundreds of Residential Projects.